Nigeria gets $200m refund in gas plant suit

Africa

A court in London on Tuesday ordered that Nigeria be given the $200m it deposited last year pending its appeal against the $10 billion awarded to a firm over a failed gas plant.

Process and Industrial Development (P&ID), a British Virgin Islands-registered firm, had in 2017 won a $6.6 billion arbitration award after Nigeria failed to adhere to the terms of the 2020 contract.

Last year, a UK court ruled that Nigeria’s assets could be seized if it did not pay the bill that had accrued to about $10 billion.

Nigeria was allowed to appeal but was told to pay a deposit of $200 million.

On Monday, the Central Bank of Nigeria (CBN) announced that the “London Commercial Court had ordered the release of the $200 million guarantee”.

“The court also awarded a £70,000 ($90,000) cost in favour of Nigeria in addition to an earlier award of £1.5m,” the central bank said in a statement on Twitter.

In a statement, Nigeria’s Justice Minister, Abubakar Malami said the government is happy with the successes recorded so far in the case.

 

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